The Directors are pleased to present the Seventeenth Annual Report
together with the Audited Accounts for the year ended March 31, 2007.
Rupees in Lakhs
Gross Income 51004.78 34953.55
Profit before Depreciation & Taxation 8429.14 5671.20
Depreciation 2530.40 1912.62
Profit before Taxation 5898.74 3758.57
Provision for Taxation
i) Current Tax 1325.00 421.08
ii) Deferred Tax 403.41 4.36
iii) Fringe Benefit Tax 13.47 6.53
Profit after Taxation 4156.86 3326.60
Profit available for appropriation 4156.86 3326.60
General Reserve 415.68 997.98
Proposed Dividend 221.38 221.38
Corporate Tax on Proposed Dividend 37.62 31.05
Taxation adjustments of earlier years 59.85 15.25
Balance transferred to Balance Sheet 3422.30 2120.79
Earnings per Share (Rs.) 11.26 11.80
Book Value (Rs.) 177.96 146.61
Paid-up Equity Share Capital 740.32 740.32
Reserves & Surplus 44050.89 40212.90
REVIEW OF OPERATIONS:
During the year under review, your company achieved a Gross Income of
Rs.51004.78 lacs as against Rs.34953.55 lakhs of previous year. After
providing depreciation of Rs.2530.40lacs (previous year Rs. 1912.62
lakhs), your company earned a net profit of Rs.4156.86 Lakhs as against
Rs. 3326.60 Lakhs of previous year.
The Directors are pleased to recommend an Equity Dividend of 30% on
paid up Capital for the year ended 31.03.2007 subject to approval of
the Members at the Annual General Meeting.
A separate section titled Corporate Governance including a
certificate from the Auditors of the Company confirming compliance of
the conditions of Corporate Governance as stipulated under Clause 49 of
the Listing Agreement is annexed hereto and forms part of the Report.
Sri.S.V.Patwardhan, Managing Director of the company resigned from the
Board on 30th April 2007 and in his place Sri.N.Seethaiah, Joint
Managing Director was appointed as Managing Director of the Company.
Sri.K.Srinivasa Rao, Non-Executive Director retiring by rotation is
eligible to be appointed as Director of the Company.
The Board of Directors records its appreciation for the valuable
services rendered by Sri.S.V.Patwardhan during his tenure as Managing
Director of the Company.
Directors' Responsibility Statement
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956, with respect to Directors' Responsibility Statement, it is
a) That in the preparation of accounts for the financial year ended 31
st March 2007, the applicable accounting standards have been followed,
along with proper explanation relating to material departures.
b) That the Directors have selected the accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent, so as to give a true and fair view of the state of affairs
of the company, at the end of the year under review and of the Profit
of the Company, for the year under review.
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
d) That the Directors have prepared the annual accounts for the year
ended 31st March 2007 on a going concern basis.
The relations with the employees continue to be cordial. Your Directors
express their appreciation for the dedicated services of the Employees
and Officers of the company for fulfilling the objectives and attaining
the goals of the company.
The Company has not accepted any deposits from the Public under Section
58A of the Companies Act, 1956.
Particulars of Employees
None of the employees of the company was in receipt of remuneration,
which in the aggregate exceeded the limits fixed under Sub-section (2A)
of Section 217 of the Companies Act, 1956.
Conservation of Energy, Technology Absorption and Foreign Exchange
earnings and outgo
In accordance with the requirements of Section 217 (1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of particulars in
the report of Board of Directors) Rules, 1988 particulars with respect
to conservation of energy is enclosed as Annexure-1 in this report.
M/s K.Siva Rama Krishna Prasad & Co., Chartered Accountants, the
present auditors of the company have expressed willingness to accept
the reappointment as Auditors for the financial year 2007-08 to hold
office upto the conclusion of the next Annual General Meeting. They
have furnished a certificate to the effect that their proposed
appointment if made will be in accordance with the limits specified
under 224(1-B) of the Companies Act, 1956.
The Directors express their appreciation to the Company's foreign
collaborators, Bina Puri Holdings Bhd, Malaysia, Anchored Earth Sdn
Bhd, Malaysia, SINOHYDRO Corporation, Beijing, China, SREI
Infrastructure Finance Limited, Bankers especially State Bank of India,
Canara Bank, ICICI Bank Limited, Oriental Bank of Commerce, IDBI Bank
Limited, Centurion Bank of Punjab Limited, Andhra Bank and Central
Authorities including National Highway Authorities of India (NHAI),
Irrigation & CAD Department, Government of Andhra Pradesh and other
clients, consultants and suppliers for their support and co-operation.
For and on behalf of the Board
N. NAGESWAR RAO
Place : Hyderabad
Date : 30.07.2007
ANNEXURE - 1 TO THE DIRECTORS' REPORT
(Information as per section 217(1)(e) of the Companies Act, 1956 read
with the Companies (Disclosure of particulars in the Report of the
Board of Directors) Rules, 1988)
I. CONSERVATION OF ENERGY
a) Introduced Load Sharing Engine Generator Control Package (EGCP)
System in our diesel generator plants. This has resulted in equitable
load sharing on all Generator sets. Further, introduction of suitable
rating capacitors along with EGCP system has resulted in obtaining
higher KWH per litre of diesel, which in turn reduces the cost.
b) Introduction of FCMA (Flux Compensated Magnetic Amplifier) Starters
for the Crusher motors. This reduces the starting currents
c) Energy conservation measures reduce the production cost per unit
with reference to energy consumption.
d) Total energy consumption and energy consumption per unit of
production as per Form-A of the annexure to the rules of industries
specified in the schedule thereto: Not Applicable.
II. FOREIGN EXCHANGE EARNINGS & OUTGO
Rs. Lacs. Rs. Lacs.
A. Value of imports calculated on CIF basis:
(i) Components, embedded goods
and spare parts.
(ii) Capital goods. 3043.08 431.38
B. Expenditure in foreign currencies:
(i) GDR Expenses - 609.16
C. Earnings in foreign currencies
(On accrual basis)
(i) Interest 704.40 104.74
(ii) Re-imbursement of GDR expenses - 177.60
(iii) Foreign exchange gain - 121.72
(iv) Others 8.53 -
For and on Behalf of the Board
N. NAGESWAR RAO
Place : Hyderabad
Date : 30.07.2007